Maybank acknowledges Bank Negara’s consolidation programme behind growth

Yet lender expressed worries on expected increase in inflation and interest rate.

The consolidation programme for the domestic banking sector introduced by Bank Negara Malaysia after the 1998 financial crisis and the government's RM6.7 billion ($2 billion) stimulus package to boost the economy have helped banks become stronger.

Malayan Banking Bhd (Maybank) president and chief executive officer Datuk Seri Abdul Wahid Omar, in stating this, said the pre-emptive measures had supported the financing needs of the economy so that the nation could continue to achieve strong and sustainable growth.

"The measures introduced by the government and central bank have certainly contributed towards the various financial systems that we have now, so much so that the economy has not contracted as much we have expected, unlike some western economies," Abdul Wahid said at a luncheon talk at Wisma Tenaga Nasional Bhd.

"As we get into 2010, we are getting more optimistic. The government has announced in the budget the country's economic growth of between 2.0 and 3.0 per cent and in our case, our in-house analysts expect the economy to grow at 4.5 per cent this year," he said.

"In the banking sector, the moves introduced and implemented by the Bank Negara have helped to strengthen the banking system. Our loans have grown, the capital is strong and even our deposits grew," he added.

View the full story in Bernama.